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Notes Payable, net (Tables) | 9 Months Ended
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Sep. 30, 2017
Debt Disclosure [Abstract] |
Schedule of long-term debt instruments | The following table sets forth information with respect to the amounts included in notes payable, net as of:
| September 30, 2017 |  | December 31, 2016 |  | Interest Rate(1) |  | Contractual Maturity Date |
UNSECURED NOTES PAYABLE |  |  |  |  |  |  |  |
Unsecured Revolving Credit Facility(2) | $ | 250,000 |  |  | $ | 300,000 |  |  | LIBOR + 1.15% to 1.85% |  | 4/1/2019 | (3)
5-Year Term Loan due April 2020(2)(4) | 450,000 |  |  | 450,000 |  |  | LIBOR + 1.30% to 2.20% |  | 4/1/2020 |
5-Year Term Loan due November 2020(2) | 175,000 |  |  | 175,000 |  |  | LIBOR + 1.30% to 2.20% |  | 11/17/2020 |
7-Year Term Loan due April 2022(2)(5) | 350,000 |  |  | 350,000 |  |  | LIBOR + 1.60% to 2.55% |  | 4/1/2022 |
7-Year Term Loan due November 2022(2)(6) | 125,000 |  |  | 125,000 |  |  | LIBOR + 1.60% to 2.55% |  | 11/17/2022 |
Series A Notes | 110,000 |  |  | 110,000 |  |  | 4.34% |  | 1/2/2023 |
Series E Notes | 50,000 |  |  | 50,000 |  |  | 3.66% |  | 9/15/2023 |
Series B Notes | 259,000 |  |  | 259,000 |  |  | 4.69% |  | 12/16/2025 |
Series D Notes | 150,000 |  |  | 150,000 |  |  | 3.98% |  | 7/6/2026 |
Series C Notes | 56,000 |  |  | 56,000 |  |  | 4.79% |  | 12/16/2027 |
TOTAL UNSECURED NOTES PAYABLE | 1,975,000 |  |  | 2,025,000 |  |  |  |  |  |
SECURED NOTES PAYABLE |  |  |  |  |  |  |  |
Rincon Center(7) | 98,896 |  |  | 100,409 |  |  | 5.13% |  | 5/1/2018 |
Sunset Gower Studios/Sunset Bronson Studios | 5,001 |  |  | 5,001 |  |  | LIBOR + 2.25% |  | 3/4/2019 | (3)
Met Park North(8) | 64,500 |  |  | 64,500 |  |  | LIBOR + 1.55% |  | 8/1/2020 |
10950 Washington(7) | 27,549 |  |  | 27,929 |  |  | 5.32% |  | 3/11/2022 |
Pinnacle I(9)(10) | 129,000 |  |  | 129,000 |  |  | 3.95% |  | 11/7/2022 |
Element LA | 168,000 |  |  | 168,000 |  |  | 4.59% |  | 11/6/2025 |
Pinnacle II(10) | 87,000 |  |  | 87,000 |  |  | 4.30% |  | 6/11/2026 |
Hill7(11) | 101,000 |  |  | 101,000 |  |  | 3.38% |  | 11/6/2026 |
TOTAL SECURED NOTES PAYABLE | 680,946 |  |  | 682,839 |  |  |  |  |  |
TOTAL NOTES PAYABLE | 2,655,946 |  |  | 2,707,839 |  |  |  |  |  |
Held for sale balances(10) | (216,000 | ) |  | (216,000 | ) |  |  |  |  |
Deferred financing costs, net(12) | (15,588 | ) |  | (18,516 | ) |  |  |  |  |
TOTAL NOTES PAYABLE, NET(13) | $ | 2,424,358 |  |  | $ | 2,473,323 |  |  |  |  |  |
_________________
(1) | Interest rate with respect to indebtedness is calculated on the basis of a 360-day year for the actual days elapsed. Interest rates are as of September 30, 2017, which may be different than the interest rates as of December 31, 2016 for corresponding indebtedness.
(2) | The Company has the option to make an irrevocable election to change the interest rate depending on the Company’s credit rating. As of September 30, 2017, no such election had been made.
(3) | The maturity date may be extended once for an additional one-year term.
(4) | Effective July 2016, $300.0 million of the term loan was effectively fixed at 2.75% to 3.65% per annum through the use of two interest rate swaps. See Note 10 for details.
(5) | Effective July 2016, the outstanding balance of the term loan was effectively fixed at 3.36% to 4.31% per annum through the use of two interest rate swaps. See Note 10 for details.
(6) | Effective June 1, 2016, the outstanding balance of the term loan was effectively fixed at 3.03% to 3.98% per annum through the use of an interest rate swap. See Note 10 for details.
(7) | Monthly debt service includes annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.
(8) | This loan bears interest only. Interest on the full loan amount was effectively fixed at 3.71% per annum through the use of an interest rate swap. See Note 10 for details.
(9) | This loan bears interest only for the first five years. Beginning with the payment due December 6, 2017, monthly debt service will include annual debt amortization payments based on a 30-year amortization schedule with a balloon payment at maturity.
(10) | The Company owns 65% of the ownership interests in the consolidated joint venture that owns the Pinnacle I and II properties. The full amount of the loan is shown. The Company entered into an agreement on September 14, 2017 to sell its ownership interest in the consolidated joint venture that owns Pinnacle I and Pinnacle II. The sale is expected to close in the fourth quarter of 2017. These properties meet the definition of properties held for sale.
(11) | The Company owns 55% of the ownership interest in the consolidated joint venture that owns the Hill7 property. The full amount of the loan is shown. The maturity date of this loan can be extended for an additional two years at a higher interest rate and with principal amortization.
(12) | Excludes deferred financing costs related to properties held for sale and amounts related to establishing the Company’s unsecured revolving credit facility.
(13) | Excludes amounts related to a public offering of senior notes that closed October 2, 2017.
Schedule of maturities of long-term debt | The following table summarizes the minimum future principal payments due (before the impact of extension options, if applicable) on the operating partnership’s secured and unsecured notes payable as of September 30, 2017:
Year |  | Annual Principal Payments
Remaining 2017 |  | $ | 821 |
2018 |  | 101,157 |
2019 |  | 257,886 |
2020 |  | 692,493 |
2021 |  | 3,142 |
Thereafter |  | 1,600,447 |
Total(1) |  | $ | 2,655,946 |
_________________
(1) | Includes balances related to properties that have been classified as held for sale.
Summary of balance and key terms of the unsecured revolving credit facility | The following table summarizes the balance and key terms of the unsecured revolving credit facility as of:
| September 30, 2017 |  | December 31, 2016
Outstanding borrowings | $ | 250,000 |  |  | $ | 300,000 |
Remaining borrowing capacity | 150,000 |  |  | 100,000 |
Total borrowing capacity | $ | 400,000 |  |  | $ | 400,000 |
Interest rate(1) | LIBOR + 1.15% to 1.85%
Facility fee-annual rate(1) | 0.20% or 0.35%
Contractual maturity date(2) | 4/1/2019
_________________
(1) | The rate is based on the operating partnership’s leverage ratio.
(2) | The maturity date may be extended once for an additional one-year term.
Summary of existing covenants and their covenant levels | The following table summarizes existing covenants and their covenant levels, when considering the most restrictive terms:
Covenant Ratio |  | Covenant Level
Leverage ratio |  | maximum of 0.60:1.00
Unencumbered leverage ratio |  | maximum of 0.60:1.00
Fixed charge coverage ratio |  | minimum of 1.50:1.00
Secured indebtedness leverage ratio |  | maximum of 0.45:1.00
Unsecured interest coverage ratio |  | minimum of 2.00:1.00
Schedule of interest costs incurred | The following table represents a reconciliation from the gross interest expense to the amount on the interest expense line item in the Consolidated Statements of Operations:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Gross interest expense(1) | $ | 24,107 |  |  | $ | 21,726 |  |  | $ | 70,345 |  |  | $ | 59,911 |
Capitalized interest | (2,831 | ) |  | (2,960 | ) |  | (7,817 | ) |  | (8,414 | )
Amortization of deferred financing costs and loan premium, net | 1,185 |  |  | 1,144 |  |  | 3,558 |  |  | 3,278 |
Interest expense | $ | 22,461 |  |  | $ | 19,910 |  |  | $ | 66,086 |  |  | $ | 54,775 |
_________________
(1) | Includes interest on the Company’s notes payable and hedging activities.

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